The Albright Company uses standard costing and has established the following standards for its single product: Direct Materials Direct Labour Variable Manufacturing Overhead 2 litres at $3 per litre 0.5 hours at $8 per hour 0.5 hours at $2 per hour During November, the company made 4,000 units and incurred the following costs: Direct Materials Purchased Direct Materials Used Direct Labour Used Actual Variable Manufacturing Overhead 8,100 litres at $3.10 per litre 7,600 litres 2,200 hours at $8.25 per hour $4,175 The company applies variable manufacturing overhead to products on the basis of direct labour hours. 1. What was the materials price variance for November? $810 favourable. A) $810 unfavourable, $2,310 favourable. $2,310 ynfavourable. 2. What was the materials quantity variance for November? A) $300 unfavourable, $1,200 favourable. B) C) $1,200 ynfavourable. $1,500 favourable. 3. What was the labour rate variance for November? $550 ynfavourable, A) $1,050 ynfavourable, B) $2,150 favourable. $2,150 ynfavourable, D)

The Albright Company uses standard costing and has established the following standards for its single product: Direct Materials Direct Labour Variable Manufacturing Overhead 2 litres at $3 per litre 0.5 hours at $8 per hour 0.5 hours at $2 per hour During November, the company made 4,000 units and incurred the following costs: Direct Materials Purchased Direct Materials Used Direct Labour Used Actual Variable Manufacturing Overhead 8,100 litres at $3.10 per litre 7,600 litres 2,200 hours at $8.25 per hour $4,175 The company applies variable manufacturing overhead to products on the basis of direct labour hours. 1. What was the materials price variance for November? $810 favourable. A) $810 unfavourable, $2,310 favourable. $2,310 ynfavourable. 2. What was the materials quantity variance for November? A) $300 unfavourable, $1,200 favourable. B) C) $1,200 ynfavourable. $1,500 favourable. 3. What was the labour rate variance for November? $550 ynfavourable, A) $1,050 ynfavourable, B) $2,150 favourable. $2,150 ynfavourable, D)

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Description: The Albright Company uses standard costing and has established the following standards for itssingle product:Direct MaterialsDirect LabourVariable Manufacturing Overhead2 litres at $3 per litre0.5 hours at $8 per hour0.5 hours at $2 per hourDuring N

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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